Bakkt — Third Quarter 2026 Earnings Summary

Financial Performance:

• Total revenue was $149.2 million, a 62.9% decrease from $402.2 million in Q3 2025, primarily due to lower crypto trading volume and client losses.
• GAAP net income attributable to Bakkt was $14.3 million ($0.31 per diluted share), compared to a net loss of $14.9 million ($1.15 per share) in Q3 2025.
• Operating expenses excluding crypto costs and execution, clearing, and brokerage fees were $16.1 million, down 39.7% from $26.7 million in Q3 2025, driven by lower compensation, professional services, and administrative expenses, as well as the non-recurrence of $5.6 million in restructuring charges.
• Adjusted EBITDA loss narrowed to $11.8 million from $14.8 million in Q3 2025, a $3.0 million improvement on a consistent basis.
• Cash, cash equivalents, and restricted cash totaled $37.3 million as of September 30, 2026, down from $50.7 million at June 30, 2026, reflecting $17.9 million in net cash used in operating activities.
• The company reported no long-term debt.
• Operating loss from continuing operations narrowed 42.9% to $14.4 million.
• The quarter included a $26.8 million non-cash gain on Transchem warrants.

Guidance and Future Outlook:

• The company reiterates its full-year 2026 Total Transacting Volume (TTV) target of approximately $3 billion.
• The company establishes a first-half 2027 TTV target of approximately $6 billion.
• The full-year 2026 target implies approximately $2.4 billion of TTV in the fourth quarter.
• Management expects client activations to increase significantly from November 2026, with settlement, treasury, and payments flows expected to recur once clients are live.
• Monthly Active Users (MAUs) are targeted to reach approximately 25,000 by December 2026.
• Beginning in December 2026, the company will publish a monthly Bakkt Engine Report showing completed month's TTV and annualized run rate.

Business Segments and Product Lines:

• Total Transacting Volume (TTV) was $147.9 million in Q3 2026, bringing the nine-month TTV to $557.9 million.
• Monthly Active Users (MAUs) were 9,760 in September 2026, the first reported period for this metric.
• Strategic Asset Value (SAV) in Bakkt Global reached $145.2 million as of September 30, 2026, up from $118.6 million at June 30, 2026.
• SAV comprises a $134.8 million fair value Transchem warrant position and a $10.4 million carrying value equity method investment in Bitcoin Japan Corporation.
• The Bakkt Payments Portal is live for business clients, enabling bank account and wallet connections, cash-to-stablecoin conversion, and beneficiary payments.
• A U.S. stablecoin card-as-a-service program with Thredd was announced on October 13, 2026.
• A cross-border trading desk for non-U.S. institutional clients is being built with an initial launch targeted for Q4 2026.
• Bakkt Agent Embedded Finance is available to partners.
• The commercial team is focused on activating clients in integration for digital asset and cross-border trading execution, stablecoin on/off-ramps, cross-border payments, and Bakkt Agent modules.

Market and Competitive Landscape:

• The company notes a loss of clients contributing to the decline in crypto trading volume.
• Management states that the commercial ramp is underway with institutional and cross-border clients currently integrating.
• The company serves financial institutions, fintechs, and consumer brands.

Risks and Challenges:

• Forward-looking statements regarding TTV targets and MAU growth depend on client integrations, compliance, banking, and regulatory approvals progressing on anticipated timelines.
• Risks include market conditions, client implementation delays, partner and regulatory requirements, and the potential for actual results to differ materially from targets.
• Specific risks include volatility in digital asset prices, regulatory uncertainty, potential reclassification of digital assets as securities, and reliance on third-party custodians.
• The company faces risks related to the integration of Distributed Technologies Research Global Ltd. (DTR) and the realization of anticipated synergies.

Management Commentary and Tone:

• CEO Akshay Naheta stated, "The foundation is built, and the commercial ramp is underway," emphasizing that volume is the key metric moving forward.
• Naheta noted that the full-year 2026 target is reiterated because the ramp has started, with activations beginning in October and expected to increase significantly in November.
• CFO Matt White highlighted a lower operating cost base year-over-year and a balance sheet with no long-term debt, stating the focus is on converting commercial activity into improved operating performance.
• Management expressed confidence that "the best of Bakkt is ahead of us" and intends to report progress monthly.

Other Key Points:

• The company appointed Mark Hiriart as Global Head of Markets, Aman Ghose as Senior Vice President, Institutional Partnerships and Growth, and Gerry Afentakis as Managing Director, Europe.
• Matt White was appointed Chief Financial Officer effective August 17, 2026, succeeding Karen Alexander.
• The company acquired DTR, with $3.2 million in consideration paid in the nine months ended September 30, 2026.
• The company acquired Gyzer, with $253,000 in consideration paid in the nine months ended September 30, 2026.
• The company invested $250,000 in Swan and $9.41 million in Transchem warrants during the nine months ended September 30, 2026.
• Proceeds from equity offerings totaled $69.6 million in the nine months ended September 30, 2026.
• No shares were sold under the Company's at-the-market offering in Q3 2026.
• The company has 45,109,234 Class A common shares issued and outstanding as of September 30, 2026.